Recognize – a private equity firm focused on investing in digital services businesses – announced that it has made a majority investment in IT asset disposition (ITAD) provider Sprout. And New Capital Partners, an investor in Sprout since 2019, will continue as a minority investor.
Launched in 2014, Sprout is the emerging leader of global ITAD solutions, specializing in retiring complex hardware portfolios from the endpoint to the cloud. The company’s proprietary software platform—embedded within the supply chain systems and processes of the world’s largest and most privacy-obsessed enterprises, enables Sprout to deliver end-to-end services that drive measurably superior data security, sustainability, and total-cost-of-ownership outcomes.
Over 200 at-scale and hyperscale enterprises utilize Sprout’s ITAD solutions in over 40 countries across six continents through a global network of processing centers.
Robert W. Baird & Co. served as the financial advisor and Maynard Nexsen PC and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to Sprout. And Willkie Farr & Gallagher LLP acted as legal advisor to Recognize.
KEY QUOTES:
“Recognize’s specialization in the digital services sector, along with a strong alignment with our team on our North Star, made them an obvious partner for Sprout in our next phase of growth. We are thrilled to continue aggressively investing in our people, clients, and business together.”
– Shelly Li, Chief Executive Officer of Sprout
“Increasing regulation and scrutiny around secure data destruction and ESG creates a significant and growing need for Sprout’s services. Sprout is uniquely positioned in a market that is currently at an inflection point as advancements in compute and demand for GenAI applications are necessitating increasing infrastructure spending and hardware refreshes within the enterprise. We look forward to partnering with Shelly and the Sprout management team to continue their rapid growth trajectory by investing in technology, expanding the solution into related areas and pursuing M&A opportunities.”
– Charles Phillips, Managing Partner at Recognize
